Milwaukee-based Weyco Group Inc. today posted earnings for the first quarter of 2016, which ended March 31.
The parent company of Florsheim, Stacy Adams, Bogs and other shoe brands said its Q1 net earnings decreased 25 percent, to $2.7 million, or 25 cents per diluted share, from $3.6 million, or 33 cents per diluted share, in the previous year’s first quarter. Total sales improved 1 percent year over year to $78.9 million, from $78.1 million in the comparable period.
“Overall, our first quarter proved challenging,” Weyco chairman and CEO Thomas Florsheim Jr. said in a release after the market close. “While we experienced top-line sales growth, our businesses in Canada and Australia continue to be hurt by the strong U.S. dollar, which drove down our operating results for the quarter. While the strength of the U.S. dollar may continue to present challenges for us in the near term, we believe that all of our major brands have good momentum in their respective markets and are well-positioned for future growth.”
Net sales in the North American wholesale segment, which include North American wholesale sales and licensing revenues, increased 1.8 percent to $62.2 million. Within the wholesale segment, sales at the Stacy Adams brand were up 12 percent, while Florsheim net sales rose 8 percent. The company said those gains were offset by lower net sales of the Bogs and Nunn Bush brands. Impacted by the mild winter, Bogs net sales were down 17 percent for the quarter, while sales at the Nunn Bush brand were down 3 percent due to lower sales to department stores and off-price retailers.
Watch on FN
Net sales in the North American retail segment, which include sales from the company’s Florsheim retail stores and its Internet business in the U.S., increased 4 percent year-over-year to $5.1 million. Same-stores sales (which include U.S. internet sales) gained 7 percent for the quarter.
